QUESTION ONE: (a) The accounting cycle has various key steps with the last step being Closing the Books which is usually done at the end of the financial year. The books have to be closed before starting to record the transactions for the next year. Required; Explain the procedures that are involved when Closing the Books at the end of the year before the transactions for the next can be recorded. Provide the relevant ledger entries that required Page 1 of 4 when closing the books. (4 Marks) (b) Equity bank Itd is one of the largest banks in Kenya that has been operating in Kenya for more than 10 years. The general ledger transaction cycle is one of the main processes that would be found within the accounting information systems for Equity bank Itd. Required; i) Explain the four major processes that you would find within the general ledger (b) Equity bank ltd is one of the largest banks in Kenya that has been operating in Kenya for more than 10 years. The general ledger transaction cycle is one of the main processes that would be found within the accounting information systems for Equity bank ltd. Required; i) Explain the four major processes that you would find within the general ledger transaction cycle for Equity bank ltd. (4 marks) ii) Explain two other management reports other than the two financial statements of Income statement and Balance sheet that can be provided by the general ledger transaction cycle for Equity bank ltd. (2 marks) (c) The following information has been extracted from the payroll transaction cycle for Mr. Price Kenya Ltd which is a company that sells clothes and other accessories in Kenya. The management of the company wants to use the provided information to evaluate the current payroll transaction cycle system with the aim of identifying areas of weakness. The payroll transaction cycle is as follows; The time data is recorded in each department using manual physical time cards for each employee. Each employee fills out their own time cards with the supervisors signing the forms at the end of each day. All the employees are employed under part time basis. If the night shift employees forget to sign-out using their ID cards the time is recorded manually and the day time shift supervisor signs the forms in the morning. Kenya Ltd which is a company that sells clothes and other accessories in Kenya. The management of the company wants to use the provided information to evaluate the current payroll transaction cycle system with the aim of identifying areas of weakness. The payroll transaction cycle is as follows; The time data is recorded in each department using manual physical time cards for each employee. Each employee fills out their own time cards with the supervisors signing the forms at the end of each day. All the employees are employed under part time basis. If the night shift employees forget to sign-out using their ID cards the time is recorded manually and the day time shift supervisor signs the forms in the morning. At the end of the month, the payroll clerk's accountant enters the time card data into a payroll file for processing. Before the payroll accountant calculates the payroll, a supervisor goes through the payroll Masterfile to ensure that the time card data is recorded accurately. Before the payroll is processed for the current month, human resources send data on personnel changes, such as increases in pay rates and new employees. The payroll clerks enter this information into the payroll master file so it is available for processing. Sometimes mistakes are made by the human resources department by recording the wrong pay rate or an employee has left and the department forget to remove the record. The payroll for the month is then processed and individual employee paychecks are generated. At the end of the month, the payroll clerk's accountant enters the time card data into a payroll file for processing. Before the payroll accountant calculates the payroll, a supervisor goes through the payroll Masterfile to ensure that the time card data is recorded accurately. Before the payroll is processed for the current month, human resources send data on personnel changes, such as increases in pay rates and new employees. The payroll clerks enter this information into the payroll master file so it is available for processing. Sometimes mistakes are made by the human resources department by recording the wrong pay rate or an employee has left and the department forget to remove the record. The payroll for the month is then processed and individual employee paychecks are generated. Several important reports are also generated for management. In addition, the payroll accountant also processes the deductions for the month and remits the money via bank transfer. The payroll accountant is not required to prepare any payment voucher for any cash disbursements. Required; i) Identify two weaknesses from Price Kenya Ltd payroll transaction cycle described above. (2 marks) ii) Explain two control procedures that that you would recommend adopted to deal with the identified weaknesses from Price Kenya Ltd payroll transaction cycle described above. (2 marks) iii) Identify all the major processes from the details provided above for Price Kenya Ltd payroll transaction cycle and prepare a data flow diagram (DFD) to document the entire payroll transaction cycle. (6 marks)